Bitcoin: the SEC’s ETF Decision Caps Price Gains
The US Securities and Exchange Commission (SEC) Wednesday rejected applications for 9 Bitcoin-based ETFs (exchange-traded funds) from 3 separate companies, stay tuned…
Bitcoin’s (BTC) spiked to a 15-day high Wednesday, but caution ahead of the US Securities Exchange Commission’s (SEC) comming decision on a Bitcoin exchange-traded fund (ETF) could limit further gainers for the world’s #1 cryptocurrency
The leading cryptocurrency rose to 6,899 on Bitfinex early Wednesday the highest level since 7 August, and is accompanied by a 10% fall in the BTC/USD shorts.
BTC’s convincing move above 6,600 perhaps marks a breakout its range and signal continuation of the rally off of the 14 August lows at 5,859, opening the way for a move at the Psych resistance: 7,000.
Investors are cautious ahead of the SEC’s ruling on whether to allow ETFs.
The Northside break of the diamond pattern seen in the chart above looks like a Bearish-to-Bullish trend change, that is, the sell-off from the July high of 8,507 has ended and the Bulls regained control.
RSI is holding above 50.00 in favor of the Bulls.
Meanwhile, the 50-Day MA is beginning to rise in a Bull-friendly manner and could soon cut the 100-Day MA from below: The Bull Cross.
BTC’s rise to 6,899 validates the Bullish crossover between the 5 and 10-Day MAs and the upward sloping RSI.
It appears the charts are aligning in favor of the Bulls, Bitcoin has already retraced close to 50% of the gains seen Wednesday, possibly validating the skepticism around Wednesday’s rally.
The retrace 6,670 also marks a failure to hold on to gains above the key resistance at 6,870 at 38.2% Fibonacci retracement of the sell-off from 8,507 to 5,859.
But hang on Bitcoin is currently trading 6,413.91,+47.78, or +0.7505%, as of 6:07a BST, the market is open
- Bitcoin’s Bullish breakout has proved to be lacking in staying power. Acceptance and a hold above 6,870, the Fibo resistance could boost the odds of a rally to 7,000.
- On the Southside, a move below 6,230 would shift risk in favor of a fall below 6,000.
- The SEC’s decision on the Bitcoin ETF could send prices North or South, so the market will trade cautiously.